Delisted! Guangdong cross-border sellers lose out in the capital market

In recent years, the cross-border e-commerce circle has been changing rapidly. Some sellers have gone from obscurity to becoming unicorns discussed by all walks of life overnight, such as SHEIN; some sellers have made steady progress and successfully listed independently on the A-share market and joined the "10 billion club", such as Anker Innovations; and some sellers were once very successful and went public early, but after knocking on the door of the capital market, their revenue declined year after year, and they finally had to delist.

Guangdong Baoxin Global Home Furnishing Co., Ltd. ( hereinafter referred to as "Baoxin Global") in this article belongs to the last category. Recently, it announced that its stock listing has been terminated. Coincidentally, at about the same time, Zhiou Home Furnishing, which was also a big seller of home furnishings and was established two years earlier than it, received news that its GEM IPO was approved for registration. The comparison between the two makes people sigh: "Similar categories have different destinies."

Six years of listing, delisted in one day

On April 27, Baoxin Global forwarded the National Equities Exchange and Quotations Co., Ltd.'s "Announcement on the Termination of Listing of Shares of Guangdong Baoxin Global Home Furnishing Co., Ltd."

The announcement stated that Baoxin Global recently submitted an application to terminate its stock listing. According to the provisions of the "Implementation Rules for the Termination of Listing of Stocks of Companies Listed on the National Equities Exchange and Quotations", it was decided to terminate its stock listing from April 28, 2023.

This indicates that Baosight Global was officially delisted on April 28, and its journey on the New Third Board has come to an end. Currently, its stocks, financial reports, etc. cannot be queried on the investment platform. Prior to this, it had been suspended for more than 20 days (the stock was suspended since April 4), and the final status of the stock price was 2.08.

As for the reason for the termination of listing, it stated in another announcement that it was to cooperate with the company's future development strategy and its own business development needs, improve decision-making efficiency, reduce operating costs, and better maximize the interests of the company and all shareholders.

Baoxin Global, formerly known as Dongguan Baoxin Import and Export Company, was established in 2012. Its business is divided into three major sectors: B2B2C home furnishing cross-border e-commerce business, B2B home furnishing export business, and domestic B2C home furnishing retail business. THY-HOM (outdoor home furnishing products) and AGHD ECO (indoor home furnishing products) are the two major brands it operates.

Products include outdoor furniture, indoor furniture, office furniture , tableware , etc. The main sales place is the United States . It has entered mainstream North American e-commerce platforms such as Amazon, Wayfair, and Office Depot.

It was selected for three consecutive years in 2020, 2021 and 2022 in the annual China Cross-border E-commerce "Top 100" list released by the E-Commerce Research Center of the China Internet Network Information Center.

Due to industry reasons, most founders of cross-border e-commerce companies are relatively young, but Lai Xiyin, the actual controller of Baosight Global, is a "post-60s". He was born in 1966 and is 57 years old this year. Before founding the company, he worked as a Western medicine doctor in a hospital for 4 years and as a manager in a printing factory for 7 years.

However, under his leadership, Baosight Global was listed on the New Third Board in 2017, just five years after its establishment. But in the five years since then, its performance has been declining, and finally, six years after listing, it was delisted in April this year. It took five years to prepare for listing on the New Third Board, but it took less than a month to delist.

Although Baoxin Global has explained the reasons for delisting, Yien.com believes that there is too much whitewashing involved and it cannot be fully trusted. On the contrary, performance factors are more credible.

Performance has declined sharply, and growth has been negative for four consecutive years

The financial report shows that in 2017, Baosight Global achieved operating income of 376 million yuan and net profit of 14.54 million yuan, a year-on-year increase of 90.41%. This is its best performance since it was listed on the New Third Board. Since then, its revenue and net profit have been declining.

Among them, the decline in 2018 and 2019 was not too obvious, with operating income of about 300 million yuan and net profit of 5 million to 7 million yuan. However, after entering 2020, the situation took a sharp turn for the worse, with revenue plummeting from 292 million yuan in the previous year to 114 million yuan, and net profit turning from a net profit of 5.2643 million yuan to a loss of 5.7572 million yuan.

Baosight Global disclosed the reason for the sharp drop in revenue in its 2020 semi-annual report: it was mainly due to the divestiture of the bulk trade B2B business. In the past, the revenue of this business accounted for about 60% of its total revenue.

In addition, the year-on-year growth of revenue and net profit from 2018 to 2021 was negative. According to the previous announcement, its 2022 financial report was disclosed on February 26, but now that the delisting time has taken effect, the performance of 202 cannot be checked, but from the semi-annual report disclosed previously, the year-on-year growth of revenue is still negative.

In contrast, Zhiou Home Furnishing , which was recently approved for registration on the ChiNext IPO, has seen its performance soar all the way, with revenue increasing from 1.595 billion yuan in 2018 to 5.967 billion yuan in 2021, which is really a cause for regret.

In the cross-border circle, Baosight Global can be regarded as one of the earliest cross-border e-commerce sellers to be listed. Sellers that listed on the New Third Board before and after it include Aok Technology ( November 2015), Aosen E-Commerce (November 2018), Youkeshu (April 2016), Jiazhilian (August 2016), and Zeshang Technology (November 2015).

But the paths they took and their fates were different.

Among them, Aokia Technology quickly started A-share IPO counseling after delisting from the New Third Board, and Aosen E-Commerce also applied to delist from the New Third Board and then switch to A-shares in 2021. However, after Amazon's account blocking, Aokia Technology withdrew its counseling filing, and its path to A-share listing was obviously blocked.

Youkeshu and Jiazhilian took the road of "saving the country by taking a detour" and went public through A-share listed companies Tianze Information and Xunxing Shares respectively. However, their bets with listed companies ended up in a mess. Jiazhilian lost the bet, and its founders Gan Qingcao, Zhu Ling and Common Dream were sued for 1 billion yuan. Youkeshu was also plagued by "illness". Not only did it fail in the bet, its revenue continued to decline, and it laid off a large number of employees. Its stock was also "ST" recently.

ZeShang Technology is still holding on to the New Third Board, but its revenue has declined sharply in the past two years. Its revenue in 2020-2022 was 297 million yuan, 63.9095 million yuan, and 49.1728 million yuan, respectively.

It is undeniable that in this process, they have all tried to find their own way out, and Baoxin Global is no exception.

Home furnishings are not doing well, so you switch to selling wine?

Nowadays, competition is becoming increasingly fierce in all sectors, and the home furnishing industry is also caught in this dilemma. From the perspective of the industry, new sellers are constantly pouring in, and old rivals are becoming increasingly powerful. Sellers in the market can easily be kicked out if they are not careful.

From the perspective of the track itself, the development has gradually reached a bottleneck. Recently, the news that Amazon's home furnishings seller Fully will cease operations shocked the cross-border circle. In fact, since last year, a wave of bankruptcies has swept the home furnishing industry.

Among them, British home furnishing e-commerce platform Made.com, well-known home furnishing e-commerce platform Brosa, and American home furnishing giant NBG Group have successively entered bankruptcy management procedures. At the same time, American home furnishing retail giant 3B (Bed Bath & Beyond) also expressed its consideration of filing for bankruptcy.

Even Wayfair, the US home furnishing e-commerce giant, is having a hard time. Its 2022 financial report shows that its revenue last year was US$12.2 billion, a year-on-year decrease of 10%, with a 7% decrease in the US market and a 29% decrease in the European market. Its gross profit was US$3.4 billion and its net loss was US$1.3 billion, while its net loss in 2021 was US$130 million.

Of course, it is undeniable that there is also the reason of "market winter". However, the competition in the home furnishing track is becoming more and more fierce, and it is becoming more and more difficult to survive. In this context, Baoxin Global is also looking for ways to deal with it. In its main business total revenue, Yien.com found that in addition to furniture and other business revenues, there is also a red wine business, with revenue of 600,200 yuan in 2021.

The last seller who suddenly started selling wine while selling goods in the cross-border circle was Jihong Shares, which was sold on the independent website. The specific results were not disclosed in its 2022 financial report released not long ago, so there is still a question mark about Baoxin Global's "red wine" road.

Baosight Global